Why should I buy SGB rather than physical gold? What are the benefits over holding physical gold?

Here are some of the many benefits of investing in Sovereign Gold Bonds (SGBs):

• The quantity of gold bought remains protected as you get the current market price at the time of redemption/premature redemption

• The risks and costs of holding gold in physical form are eliminated

• Additionally, you get periodic interest when you invest in SGBs

• Unlike physical gold, there are no concerns with the purity of the gold as they are held in bonds

• SGBs are held in dematerialized form with the Reserve Bank of India. This eliminates the risk of loss or theft